KARACHI, Dec 4: Stocks hit a fresh record high on Tuesday as institutions took new positions in blue chips amid expectations in a cut in the State Bank of Pakistan's key policy rate when it meets this month to unveil its monetary policy, dealers said.The Karachi Stock Exchange (KSE) 100-share index ended 0.68 per cent, or 112.17 points, to record high of 16,650.15 points.

Turnover decreased slightly to 193.05 million shares, compared with 195.59 million traded on Monday, as some investors were cautious and preferred to stay on the sidelines as the index breached its previous all-time high.

Trading value also fell to Rs4.9bn from the previous day’s value of Rs5.37bn but market capitalisation rose to Rs4.17 trillion, compared with Monday’s Rs4.13tr.

“Led by hi cap stocks, Karachi bourse saw new record high. Big market cap stocks, like OGDC, PPL, MCB, gained due to active institutional support.

Retail investors were seen active in JSCL, MLCF and KESC.

Low inflation for November increased expectation of other policy rate cut to force investors to take new positions," said Samar Iqbal, a dealer at Topline Securities Ltd.

Consumer price index for November stood at 6.93 per cent year on year, down 0.39 per cent, month on month, depicting a deflationary trend, which has raised hopes that the central bank will continue to loosen its monetary policy when it meets this month.“Fresh flows in oil and gas marketing and exploration stocks led the benchmark on the record making track, thus keeping the low volume led adjustment away for the day, gains did found follow-up mainly in the value stocks, thus allowing the index to maintain triple digit gains on closing bell," said Hasnain Asghar Ali from Escorts Capital Ltd.

Heavyweight Oil and Gas Development Co Ltd gained Rs3.50 to Rs190.16 while MCB Bank rose Rs3.08 to Rs192.75.

The biggest gainer was Nestle Pakistan which rose Rs221.15 to Rs4,644,15, followed by Island Textile which ended Rs41.27 higher at Rs1,040.

Unilever Pakistan witnessed the biggest loss for the day as it shed Rs130.96 to Rs9,805 followed by Bata Pakistan which shed Rs10.33 to close at Rs1,649.67.

Foreign investors bought equities in the net sum of $1.457 million, compared with a net outflow of $1.62 million on Monday.

The KSE-30 index ended 0.75 per cent, or 100.54 points, higher at 13,487.64 and out of the 372 companies traded, the value of 208 increased, 139 decreased while 24 remained unchanged.

Among the 10-top traded stocks, Jahangir Siddiqui Co Ltd gained 91 paisa to Rs18.47 on 23.31m shares, Maple leaf rose 8 paisa to Rs14.52 on 19.68m shares but KESC shed 24 paisa to Rs6.66 on 14m shares.

Fauji Cement ended unchanged at Rs6.91 on 9.35m shares, Pakelektron gained 98 paisa to Rs9.07 on 7.63m shares and SuiNorth rose 81 paisa to Rs24.94 on 5.62m shares.

DG Khan Cement ended 33 paisa higher at Rs54.10 on 5.54m shares, Engo gained 90 paisa to Rs98.23 on 5.22m shares and Azgard Nine closed 13 paisa higher at Rs8.61 on 4.13m shares. Pervaiz Ahmed ended 28 paisa higher at Rs3.44 on 3.65m shares.